PWC predicts that the global cyber insurance market will grow to US$7.5bn in annual premiums by 2020. The US market has grown rapidly over the past decade due to an increase in state regulation such as mandatory notification requirements. Even still, it is thought that fewer than 10% of companies have purchased a cyber insurance product, which demonstrates the exponential growth that we are still likely to see, as reported by PWC.
The UK & European markets are likely to see similar levels of growth from 2017, as companies begin to prepare for the new EU wide General Data Protection Regulation (GDPR), which will be applied from the 25th May 2018. Although the regulation is vast, there are three key areas that are likely to change the market.
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Cyber risk crosses multiple lines of business and so it has proven difficult to establish a standard product. However, the products available can be split into the following sections:
The majority of cyber forensics, breach response and system rectification cover allows the policyholder to be indemnified for costs incurred by specialists that are chosen by the policyholder. This type of cover is estimated to not be in the best interests of either the insurer or policyholder. The insurer in this situation may have to incur unnecessarily large costs; or the adverse effect on the policyholder would be that the insurer would not cover what they deem as unnecessary expenses. This model can have a negative impact on an insurer’s loss ratio and makes the policyholder feel insecure about the cover provided.
Our main objective is to streamline the services that our insurer clients provide to their policyholders in order to create a cost effective service that benefits both the insurer’s books and delivers excellent customer service to their policyholders.
Our product is tailored individually to our insurer clients’ requirements. For more information, please contact us.
The increasing use of technology by businesses and individuals gives rise to greater potential for significant financial and reputational damage in the event of data loss or security breaches for business enterprises and their clients.
We assist insurers and insurance brokers on legal issues that arise in connection with cyber liability, including drafting policy wordings, product development, and identifying potential exposures and gaps in the market place.
At Caytons Law, we are able to assist clients to better identify, manage and protect their exposure to liabilities arising from loss, damage or modification of data, unauthorised access and other data security breaches. This can include not only financial and reputational exposure, but also regulatory and other issues relevant for professionals - with a particular focus on legal professionals.
We recognise that, in the event of data loss or security breaches, clients will have important reputational and operational issues that need to be swiftly and effectively managed and addressed alongside the legal issues and exposures. In this regard, our cyber liability team is actively developing specific solutions and new products to assist clients in better management of and protection against their specific cyber liability risks and exposures.
The team has experience of advising firms and SMEs developing technological, software, websites, and other innovative solutions with a particular focus in emerging “smart city” initiatives, as well as the shared use and development of 3D, 4D and 5D design, building information, and modelling within the construction and engineering industries. This includes advising on diverse intellectual property issues and potential infringements of intellectual property rights, including trademarks and copyright.
At the direct level, we have experience of drafting and advising on website terms and conditions of use, cookie and data protection policies, and addressing exposures arising from website internet content and blogs. Philip also has experience of drafting and advising on international joint venture and distribution agreements for the use of innovative products, including software programs.
Regulatory and data protection requests for information, and electronic disclosure are other areas where we are able to assist and provide effective solutions for clients, having regard to their specific legal and regulatory obligations.